Restore Trust And Grow The Economy : Nine Actions For Businesses To Take

A business-led non-profit think tank, Tomorrow’s Company, has published 9 actions for businesses to take in order to provide the necessary leadership for our economy to develop and rebuild trust in business post-Brexit.

Whether you were for leave or remain, the result of the referendum is a wake-up call for business and political elites. Business lost its voice in the debate because people sensed that the system is not working for them. Many of these concerns are justified, as highlighted in the recent Tomorrow’s Company report, UK Business: What’s Wrong? What’s Next? In this period of political uncertainty, it is critical that businesses do not retreat into cost cutting, but instead invest and tackle issues that have been ignored for too long, such as executive pay. This is not only vital for our economy, but also presents an opportunity for business to show leadership and regain the public’s trust.

In this paper Tomorrow’s Company sets out some simple actions that companies could take to provide this leadership:

1) Reduce dividends and buybacks, not investment, wages or employment

2) Make a public commitment – ideally at industry and regional level – to increase investment in the UK economy and in the skills of its people

3) Make a bold and public commitment on executive pay

4) Increase support for community initiatives

5) Shorten supplier payment terms

6) Build more overseas connections

7) Don’t wait for politicians to act, form industry collaborations to tackle joint problems

8) Articulate a clear purpose that is embedded throughout the culture of the organisation

9) Reform governance structures to provide a voice for stakeholders

Laurie Fitzjohn-Sykes, Tomorrow’s Company Director of Research, said

Business relies on the public’s trust in order to operate successfully.

 

“The Brexit vote shows the danger when this is lost. At Tomorrow’s Company we believe business can and must be a force for good in society. To achieve this, we need businesses to take risks, invest and tackle difficult issues. As a start we put forward 9 simple actions, which we hope to build on with our community”

The report is available at:
http://tomorrowscompany.com/publication/the-need-and-opportunity-for-business-to-lead-post-brexit